Otto Energy Limited · ASX:OEL
Otto Energy — Good Oil Conference 2016
23 slides from Otto Energy's conference presentation, September 2016
Slide 1: Good Oil Conference Perth Investor Presentation
ASX : OEL Good Oil Conference Perth INVESTOR PRESENTATION Matthew Allen, Managing Director and CEO September 2016
Slide 2: Delivering Growth Against Challenging Sector Conditions
Otto Energy Delivering Growth Against Challenging Sector Conditions Drilling success sees return to production in 2017 SM71#1 well yields gross 5 MMbbls and 3.6 Bcf discovery. Production Platform acquired. First Production 2H 2017. Potential upside to be tested during development drilling. Focus
Slide 3: Gulf of Mexico
Gulf of Mexico Building our production base High chance of success Miocene amplitude- supported targets Shallow water/onshore High liquids content Economically robust at low oil price 3 Investor Update Presentation, September 2016
Slide 4: South Marsh Island 70/71 SM70/71
South Marsh Island 70/71 SM70/71 Discovery Well SUCCESSFULLY TARGETED D5 sands on salt dome 50% WI earned through western flank contribution to well costs during the successful drilling of SM71-1 Game-changing oil + gas discovery MAP Proves technology to unlock updip plays EXISTING D5 SAND PRO
Slide 5: Further upside at SM71 discovery
Further upside at SM71 discovery New target to be appraised during development drilling SM71, 30 June 2016 SM71 #1 Discovery well Net Reserves* Oil Gas MBOE (Mbbls) (MMcf) (6:1) 1P 582 404 649 2P 2027 1462 2271 3P 2567 1835 2873 Net Prospective Resources* Oil (Mbbls) Gas (MMcf) MBOE (6:1) 2043 1990
Slide 6: SM71 Development
SM71 Development SM71 Production Facility Procured 26/8/2016- Entered purchase and construction agreement with Laredo Construction Inc. for tripod jacket, decks, helideck, boat landing and production equipment Tripod facility is capable of accommodating 6 wells and producing in excess of 5,000 b
Slide 7: Bivouac Peak
Bivouac Peak Onshore Louisiana with analogue fields Note: Otto will earn interests in the above resources volumes by participating in wells. The estimated quantities of petroleum that may potentially be recoverable by the application of a future development project(s) relate to undiscovered accumula
Slide 8: Bivouac Peak Onshore Louisiana Opportunity
Bivouac Peak Onshore Louisiana Opportunity Potential wellpath Potential wellpath 45% WI in 2500 acre lease exercisable upon contribution to well costs (60% capped at US$6m) Multiple amplitude-supported opportunities Independent prospective resource estimate based on high-quality 3D data Targ
Slide 9: Alaska
Alaska North Slope Light oil in conventional reservoirs Large prospect inventory Imminent drill campaign Low-risk capped costs Infrastructure access 9 Investor Update Presentation, September 2016
Slide 10: Tier-1 Prospects
Tier-1 Prospects Developed from extensive lead inventory 45 Leads 30 Leads High- 8 Tier-1 Prospects 2-4 Drilling Identified graded locations • HC shows in vintage wells • Rank into 3 tiers based • Mature Leads into • Highest probability of • Reservoir presence in on: Prospects: discovery vintage wel
Slide 11: Pipeline State-1 Results
Pipeline State-1 Results On-block vintage well de-risks the acreage Pipeline State-1 Pipeline State-1 was drilled as a stratigraphic test in February 1988 by Arco Alaska. The well reached a total vertical depth of 10,460 feet and encountered a number of oil-bearing intervals. Several cores were take
Slide 12: First Two Wells - Possible Configuration
First Two Wells - Possible Configuration Increase chance of success by intersecting multiple independent reservoirs with each wellbore Well-B Avenger Well A Well B Pipeline State-1 Well-A Helio Stratigraphic pinch out of shallow water prograding sands Blackbird Free oil to surface in Pipeline State-
Slide 13: Alaska: The First Two Wells
Alaska: The First Two Wells Gross Prospective Resource Net Prospective Resource Low Best High Mean Mean Net WI Prospect POS* (MMbbls) (MMbbls) (MMbbls) (MMbbls) (MMbbls) Blackbird 6 20 62 28 3 24% Helio 17 49 144 66 7 30% WELL A Hellcat 13 47 172 72 8 40% Skywagon 13 40 126 57 6 24% Avenger 20 65 22
Slide 14: Unconventional Upside: Hue/HRZ
Unconventional Upside: Hue/HRZ Optimal location for potential major shale play Recent drilling by 88 Energy at Icewine-1 well confirms Hue Shale potential in this region and second round drilling Immature with horizontal flow test is planned. Oil OTTO ENERGY Light oil ACREAGE 88 Energy Icewine-1 HRZ
Slide 15: Tanzania
Tanzania Large Volume Exploration Target Kito Prospect analogous to Kenya & Uganda discoveries Additional delineated leads may be drilled in success case 15 Investor Update Presentation, September 2016
Slide 16: Kilosa-Kilombero PSA Kito Prospect
Kilosa-Kilombero PSA Kito Prospect Large frontier exploration prospect Kito Prospect Similar to discoveries in 50 km2 Kenya & Uganda Area of Closure Up to 250m column height Reservoir type Miocene (Neogene) ‘Deep U/C’ Depth (m) Objective Depth 900 – 1,300 metres Western bounding STOIIP 269 – 780
Slide 17: Forward Activity
Forward Activity Positioning for high-impact growth SM71 development underway 2017 return to production Drilling program beginning in early 2017 to test multiple high-impact targets Funded from current cash balance 17 Investor Update Presentation, September 2016
Slide 18: Activity Timeline
Activity Timeline Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 SM Development planning Low-cost production 70/71 GULF OF Drilled MEXICO SUCCESS Bivouac Technical evaluation Peak Drill Option First Risk & rank prospects round drilling Well planning Drill 2-4 Wells ALASKA Second Ris
Slide 19: Corporate Value
Corporate Value 300.00 25 250.00 20 Equivalent value (AUD cents per share) 200.00 Value (AUD $ million) 15 150.00 $0.05 10 100.00 $0.05 OEL market capitalization 2 Sept 2016 5 50.00 $0.02 - 0 Cash SMI-71 SMI-71 Bivouac Peak Alaska Tanzania (June 2016) (2P) (Pros Resource) (Pros Resource) (Pros Resou
Slide 20: Additional Information
Additional Information Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com 20 Investor Update Presentation, September 2016
Slide 21: Corporate Snapshot
Corporate Snapshot 70,000,000 $0.07 60,000,000 $0.06 Volume (shares traded per day) 50,000,000 $0.05 OEL Share Price 40,000,000 $0.04 30,000,000 $0.03 20,000,000 $0.02 10,000,000 $0.01 0 $0.00 Capital Structure Shareholders Fully paid ordinary shares 1.181b Molton Holdings 20.5% Unlisted options1 8.
Slide 22: Experienced Board & Management Team
Experienced Board & Management Team Board of Directors Senior Management John Jetter – Non-Executive Chairman. Matthew Allen – Managing Director & CEO. LLB, BEc INSEAD BBus, FCA, FFin, GAICD Former MD/CEO J.P. Morgan Germany. Global exposure to the upstream oil and gas industry with Non-Executive Di
Slide 23: Disclaimer
Disclaimer This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Limited (the “Company”). This presentation contains forward looking statements that ar